FISCAL NOTE

Date Requested: February 17, 2017
Time Requested: 11:11 AM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2058 Introduced HB2113
CBD Subject: Health


FUND(S):

0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND, 8722 - CONS FEDERAL FUNDS DIV HUMAN SERVICES GEN ADMN FD

Sources of Revenue:

General Fund,Other Fund Federal

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to provide that the Secretary of the Department of Health and Human Resources may not change the State Medicaid program plan, without Legislative approval if the change results in a gain or loss of more than $250,000.00. There is not data or information available regarding future state plan changes to which this would be applicable to calculate the potential impact to the program if the legislation is passed but could be considerable; please see Memorandum section below. The Department's Bureau for Medical Services (BMS) is unable to calculate the potential impact of the proposed legislation as the impact would be determined on a case-by-case basis depending on the specifics of future State Plan Amendments (SPAs) that would fall above the $250,000 threshold. This bill will be problematic for WV Medicaid’s operations. Managing the SPA approval process within the 60 day annual legislative session would cause delays in submitting requests to the Centers for Medicare and Medicaid Services (CMS). Specifically, the requirements of this bill would often cause significant delay in the Department's ability to make important changes to WV’s State Medicaid plan, including changes to benefits, changes affecting the state budget, and changes required due to federal mandates. Often, the choice would be between a long delay in implementing crucial plan amendments or calling a special session to get legislative approval for the plan amendment. In the case of a special session those costs would also be a component however can not be determined with the information currently available as it is unknown with what frequency that might be applicable. The Medicaid program currently has a budget of approximately $4B; for SPAs that affect the overall program delays in required state plan changes could jeopardize billions of Federal/State dollars.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):






Memorandum






    Person submitting Fiscal Note: Bill J. Crouch
    Email Address: dhhrbudgetoffice@wv.gov